The US market for spot Ethereum exchange-traded funds (ETFs) has experienced a shift in investor sentiment, with the largest weekly inflows recorded since early August. After six consecutive weeks of outflows, there is now renewed enthusiasm among investors, as US-based spot Ethereum ETFs saw inflows totaling $58.7 million in just one day. This surge helped these funds achieve a net positive inflow of $84.5 million for the week, breaking the negative streak. Fidelity’s FETH fund led the way with a one-day inflow of $42.5 million, followed by BlackRock’s ETHA fund with $11.5 million.
Despite Fidelity’s fund leading in single-day inflows, BlackRock’s ETHA fund achieved a significant milestone by surpassing $1 billion in total net asset value just two months after its launch. This achievement places BlackRock’s Ethereum ETF among the top 20% of US market ETFs, as noted by Nate Geraci, president of The ETF Store. Other funds such as Bitwise’s ETHW, Invesco’s QETH, Grayscale’s ETH, VanEck’s ETHV, and 21Shares’ CETH also received inflows on Friday, contributing to the positive trend. However, Grayscale’s ETHE experienced outflows of $10.7 million, while Franklin’s EZET saw no significant changes in inflows or outflows.
The recent influx of funds into Ethereum ETFs came on the heels of the Federal Reserve’s rate cut, which boosted market confidence. Ethereum’s price has outperformed Bitcoin, and transaction fees have surged due to increased blockchain activity, reflecting growing interest in the cryptocurrency. The total net asset value of all Ethereum ETFs now stands at $7.4 billion, the highest since late August. The SEC has delayed its decision on Nasdaq’s proposed rule change to list and trade options on BlackRock’s iShares Ethereum Trust (ETHA) from September 26 to November 10 to further assess potential implications on market stability.
The U.S. Securities and Exchange Commission’s decision to postpone the ruling on BlackRock’s Ethereum options is not uncommon under Section 19(b)(2) of the Securities Exchange Act, allowing the regulatory authority to extend its review period for up to 90 days to thoroughly evaluate the risks and benefits of the proposal. This delay comes after the SEC approved options trading for BlackRock’s iShares Bitcoin Trust (IBIT) following amendments addressing market manipulation and risk concerns. Along with the delay on BlackRock’s Ethereum options, the SEC has also postponed its decision on a separate proposal by NYSE American LLC, indicating a cautious approach to approving new financial products in the market.
